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NEW DELHI: Gurgaon-based real estate firm Orris Infrastructure has raised Rs 100 crore from nonbanking finance firm Xander Finance in structured debt to return money to an existing investor and complete two ongoing projects, said two people with knowledge of development. “The structured debt deal has happened at an IRR of 18-20% and the money has to be repaid over the next four to five years,” said one of them.

Amit Gupta, managing director at Orris, confirmed the deal with Xander Finance and said the firm has already returned Rs 32 crore to LIC Housing from the money raised. LIC had given Rs 90 crore to Orris about a year back, of which some part has already been repaid earlier.

“We will use the rest to complete and give possession of our projects Aster Court, Aster Court Premier in Gurgaon which are close to completion,” said Gupta. Amar Merani, CEO at Xander Finance too confirmed the transaction, but did not comment on specifics. This is not the first time Xander Finance is putting money with Orris.

The NBFC had invested in Rs 200 crore in one of Orris’ Gurgaon residential projects back in 2013 but the builder had pre-paid the money early when it raised Rs 325 crore from another NBFC, IndoStar Capital. From the money raised from IndoStar, Orris had also repaid Rs 65 crore to Religare.

With a slowdown in home sales over the last few years, several builders have been accessing funds from NBFCs to complete their projects and also to majorly refinance their older funding deals. Earlier this year Ghaziabadbased builder VVIP raised Rs 120 crore from Reliance Capital to complete the first phase of its project ‘VVIP Addresses’ in Ghaziabad’s Raj Nagar Extension area and speed up construction in its second phase.

The project in Raj Nagar Extension, which is one of the many affordable housing destinations in the national capital region (NCR), has 1,800 apartments, of which the builder has offered possession in 1,100. Noida-based Supertech raised Rs 100 crore from Indiabulls Real Estate Fund to speed up construction in its projects.

In Bengaluru, land aggregator and developer Manyata Promoters is raising Rs 725 crore jointly from the NBFC arm of Edelweiss and from IIFL. Noida-based Prateek group had raised Rs 100 crore from Xander Finance for its township project in Ghaziabad while in Dharuhera near Gurgaon, builder MG Housing had raised Rs 100 crore from the NBFC arms of Edelweiss and SMC Global for a township project. Home sales have been slow in many parts of the country over the last 18-24 months and this has pushed builders towards a cash crunch necessitating fund raising.